Good morning, it’s finance editor Jeff John Roberts filling in for Allie. Like everyone here in Southern California, I’m watching in horror as out-of-control fires consume entire communities and force hundreds of thousands around Los Angeles to flee.

The ongoing calamity is shaping up to be the most expensive natural disaster in U.S. history. It is also an economic disaster as the destruction threatens homes and businesses in places like Santa Monica, a hub of the region’s thriving venture capital scene.

The financial fallout from the fires may also deliver a fatal blow to California’s crumbling insurance industry. Many leading providers like State Farm and Costco have already restricted or eliminated coverage in the state, and now home premiums that are already eye-watering will climb even higher. Sadly, many of those who lost their homes in the fires had no coverage at all.

Is there a better way? Can we draw on technology and innovation to design a cheaper, more inclusive insurance regime? Based on the billions of dollars that VCs have poured into so-called “insurtech” one would certainly think so.

A recent report by CNBC featured no less than 150 insurance startups looking to disrupt the industry. Most of these are focused on ancillary services like claim management and fraud prevention, but a good number are in the business of selling home insurance policies. Given this flourishing of startups with cutting edge analytic tools, it’s perhaps surprising that insurance options for many Americans are more scarce and costly than ever.

One reason for this is that, like so many other venture-backed fields, the value and potential of insurtech got vastly overstated in the go-go days of 2021. The hangover has been brutal. A TechCrunch survey from mid-2023 uses words like “death” and “disillusionment” while describing the truly horrid returns the sector has delivered for investors.

The bigger problem, of course, is that the home insurance market is simply too vast and capital intensive for startups to make much of an impact. There are the familiar insurance brands like Progressive and Farmer’s, whose deep pockets are backstopped by reinsurance firms with even deeper pockets. The reinsurance firms are in turn backstopped by so-called retrocession firms, with the state and federal government sometimes stepping in as a very last resort. It’s a very different ballgame than the one most startups play in, no matter how cutting edge their tech is.

The problem of how to provide affordable home insurance is harder still since it involves prickly political questions. These include deciding whether those who build homes in disaster-prone areas should be entitled to coverage in the first place, and how to build public infrastructure to ensure fire hydrants don’t run dry as they did in Los Angeles this week.

Finding the response to these questions will require a civil, evidence-based national conversation—one that feels far-off in light of the ugly finger-pointing already underway between President Trump and California lawmakers. Perhaps that conversation will come in time. For now, spare a thought for the millions of Americans still facing the fire threat and the brave firefighters working to contain it.

If you wish to help, here are some resources courtesy of Fortune’s Andrew Nusca: If you’re keen to lend support: The LAFD Foundation equips and supplies firefighters. The California Fire Foundation supports firefighters and affected residents. The Cal Fire Benevolent Association supports firefighters and their families. LA County’s Department of Animal Care and Control shelters displaced animals. GoFundMe has aggregated fundraisers related to LA’s wildfires as well as created its own relief fund. And the American Red Cross is on the scene, as always.

Jeff John Roberts
Twitter: @jeffjohnroberts
Email: jeff.roberts@fortune.com
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VENTURE DEALS

- Ouro Medicines, a San Francisco-based immune reset therapeutics developer, raised $120 million in Series A funding. TPG Life Sciences Innovations, NEA, and Norwest Venture Partners led the round and were joined by Monograph Capital, GSK, Boyu/Zoo Capital, LongRiver Investments, and others.

- Air, a New York City-based creative operations platform, raised $35 million in Series B funding. Avenir Growth led the round and was joined by XFund, Good Friends, and others.

- Grand Games, a Sisli, Istanbul-based gaming studio, raised $30 million in Series A funding. Balderton Capital led the round and was joined by existing investors Bek Ventures, Laton Ventures, and an angel investor.

- Gridware, a San Francisco-based electrical grid safety technology developer, raised $26.4 million in Series A funding. Sequoia Capital led the round and was joined by Fifty Years, Lowercarbon, True Ventures, and Convective Capital.

- PrettyDamnQuick, a Tel Aviv-based checkout optimization platform, raised $25 million in Series A funding. Peakspan Capital led the round and was joined by existing investors TLV Partners and Moneta.

- Nema Health, a New Haven-based virtual PTSD care provider, raised $14.5 million in Series A funding. Deerfield Management led the round and was joined by CVS Health Ventures and existing investors Optum Ventures, .406 Ventures, and GreyMatter.

PRIVATE EQUITY

- KKR and the Public Sector Pension Investment Board agreed to acquire a 19.9% interest in the Ohio, Indiana, and Michigan transmission companies of American Electric Power, a Columbus-based electric utility, for $2.82 billion.

- Achieve Partners acquired the digital education division of Wise Music Group, a London-based music publisher. Financial terms were not disclosed.

- Arcline Investment Management acquired Rotating Machinery Services, a Bethlehem, Penn.-based turbomachinery aftermarket services provider. Financial terms were not disclosed.

- Ascend Capital Partners acquired a majority stake in Unison Therapy Services, a Walnut Creek, Calif.-based therapy provider for pre-K–12 students. Financial terms were not disclosed.

- Auréa acquired a minority stake in Nutraceutical Research Innovations, a Nashville-based hair care brands holding company. Financial terms were not disclosed.

- Bregal Sagemount and Primus Capital acquired a majority stake in MDaudit, a Waltham, Mass.-based fintech provider for healthcare companies. Financial terms were not disclosed.

- Darktrace, backed by Thoma Bravo, agreed to acquire Cado Security, a London-based cyber incident response solution provider. Financial terms were not disclosed.

- EQT agreed to acquire Scale Microgrids, a Ridgewood, N.J.-based energy infrastructure company. Financial terms were not disclosed.

- Hidden Harbor Capital Partners acquired Quaker Valley Foods, a Philadelphia-based protein distributor. Financial terms were not disclosed.

- Kian Capital Partners acquired Eden Brothers, a Asheville, N.C.-based flower bulbs and seeds provider. Financial terms were not disclosed.

- LawnPRO Partners, backed by HCI Equity Partners, acquired Green Image Lawn Care, a York, Penn.-based lawn care services provider. Financial terms were not disclosed.

- LGT Capital Partners acquired a minority stake in Barbri, a Dallas-based legal learning solutions provider. Financial terms were not disclosed.

- Lockmasters, a portfolio company of Dominus Capital, acquired Orchard Lock Distributors, a Hamden, Conn.-based door hardware and security solutions distributor for the glass and glazing market. Financial terms were not disclosed.

- Loenbro, a portfolio company of Braemont Capital, acquired Revolution Industrial, a Chandler, Ariz.-based industrial services provider. Financial terms were not disclosed.

- National Safety Apparel, a portfolio company of Blue Point Capital Partners, acquired Warren Heim, a Fort Pierce, Fla.-based insulated bags manufacturer for electrical utility workers. Financial terms were not disclosed.

- Quorum Cyber, a portfolio company of Charlesbank Capital Partners, acquired Kivu Consulting, a Berkeley-based incident response cybersecurity firm. Financial terms were not disclosed.

- Recognize acquired a majority stake in Sprout, a Charlotte-based IT asset disposition solutions provider. Financial terms were not disclosed.

- Tencarva Machinery, backed by Bessemer Investors, acquired Detroit Pump & Mfg., a Warren, Mich.-based process pumping and fluid handling equipment provider. Financial terms were not disclosed.

- The Riverside Company acquired a majority stake in The Vomela Companies, a St. Paul-based commercial graphics provider. Financial terms were not disclosed.

- Yingling Aviation, backed by AE Industrial Partners, acquired Global Engineering & Technology, a Wichita, Kan.-based aircraft interior design and restoration services provider. Financial terms were not disclosed.

EXITS

- Axo Group, a portfolio company of Corsair Capital, agreed to acquire Zmarta Group, a Ängelholm, Sweden-based loans and contracts comparison services provider, from Bauer Media Group. Bauer Media Group agreed to acquire a minority stake in Axo. Financial terms were not disclosed.

- Gladstone Investment acquired a majority stake in Nielsen-Kellerman Acquisition, a Boothwyn, Penn.-based environmental and athletic performance measurement instruments company, from Clearview Capital. Financial terms were not disclosed.

- Novvia Group, backed by Kelso & Company, acquired Saxco, a Fairfield, Calif.-based rigid packaging distributor for the beverage industry, from Atlas. Financial terms were not disclosed.

OTHER

- Anduril agreed to acquire the radar and command and control businesses of Numerica Corporation, a Fort Collins, Colo.-based defense technology developer. Financial terms were not disclosed.

- DHL Supply Chain acquired the supply chain solutions division of Inmar Intelligence, a Winston-Salem, N.C.-based data and technology provider for retailers and healthcare companies. Financial terms were not disclosed.

- Fundamental Advisors acquired HeloAir, a Richmond-based utility and fire suppression helicopters operator. Financial terms were not disclosed.

IPOS

- Clarios International, a Milwaukee, Wis.-based vehicle battery technology company, withdrew its plans to go public on the NYSE. The company posted $10.5 billion in revenue for the year ending March 31, 2024. Brookfield Asset Management and Caisse de dépôt et placement du Québec back the firm.

FUNDS + FUNDS OF FUNDS

- Smartfin, a Brussels-based growth equity firm, raised €250 million ($257.6 million) for its third fund focused on growth-stage B2B technology companies.

- Valspring Capital, a Boston-based growth equity fund, raised $255 million for its first fund focused on healthcare.

PEOPLE

- Cowboy Ventures, a Palo Alto-based venture capital firm, added Caroline Duffy as a partner. Previously, she was at Construct Capital.

- NextEquity Partners, a Menlo Park, Calif.-based investment firm, added Alok Pandey as a venture partner. Previously, he was at Clubspeed.

- Northleaf Capital Partners, a Toronto-based private markets investment firm, promoted Thibault Jarlegant, CJ Wei, and Michelle Winters to managing director.

- TSG Consumer Partners, a San Francisco-based private equity firm, promoted Alex Gilmore to principal; Ale Mendoza and Parker Brown to senior vice president; and Christian Pavlakos, Jordan Phelan, and Phoebe Wallwork to vice president.

- Windham Capital Partners, a New York City-based growth equity firm, added Jason Helgerson and Dr. Alistair Erskine as operating partners. Helgerson is at Helgerson Solutions Group and Erskine is at Emory University.

Los Angeles fires expose insurance shortcomings. Could startups do better?